Key Findings of the Times' Investigation of Sports BettingPosted by Erick Sanders on March 7th, 2024 The New York Times researched thousands of pages of documents and interviewed lobbyists, executives, legislators, regulators and others to understand how the sports betting industry has grown so rapidly. Years ago, sports betting was illegal in most parts of the United States. Today, turn on the TV, visit a sports website, or visit a stadium, and you will be inundated with advertisements telling everyone to bet, bet, bet. The New York Times spent nearly a year investigating why the sports betting industry has grown so rapidly and what the consequences are for public health, taxpayers, the sports community, and others.
What are the consequences for public health, taxpayers, the sports community, etc.? Gambling companies and sports leagues have had a field day with state legislators. After the Supreme Court opened the door to sports betting in 2018, lobbyists pushing for legalized online betting lavished state officials with gifts, parties, and millions of dollars in donations, sometimes circumventing campaign finance rules. Many legislators followed suit. Gambling lobbyists wait for Kansas lawmakers to approve sports betting legislation in April (Credit.Amir Hamja for The New York Times) The gambling industry used dubious data to push for the legalization of sports betting, predicting that states would be delighted with the new tax revenue. The Times analyzed the industry's claims and found that, at least so far, many of its predictions are wildly optimistic. One reason for this is that lawmakers have granted favorable tax exemptions to gambling companies. These tax exemptions essentially subsidized efforts to attract customers with topcanadiancasinos.org. To attract customers, gambling companies formed alliances that pushed the envelope. For example, according to the Times, gambling companies have paid at least eight universities to promote gambling on campus. For example, in an agreement between the gambling company PointsBet and the University of Colorado at Boulder, the university pays a fee each time someone downloads the PointsBet app and uses a special promotional code. The University of Colorado at Boulder has formed a lucrative partnership with betting company PointsBet. Casino company Penn Entertainment took a different approach. It agreed to buy Barstool Sports, a company that has generated controversy with its website and podcasts. Barstool's founder and ringleader, David Portnoy, has a history of misogynistic and racist behavior and is now one of the most prominent spokesmen in the sports betting industry. Mr. Portnoy is the type of person who traditionally would have come under scrutiny from state regulators. In addition to his record of aggressive behavior, the Times learned that he had previously filed for bankruptcy, citing, among other things, a ,000 gambling loss in one year. However, in 12 of the 13 states where Penn operates barstool-branded sports betting, regulators did not require Portnoy to undergo a licensing review. David Portnoy, founder of Barstool Sports, is one of the most vocal cheerleaders in the sports betting industry. State regulators are often outnumbered and overwhelmed. The federal government does not regulate sports betting. According to a Times survey of states that have legalized sports betting, enforcement of rules tends to be haphazard and penalties light or nonexistent, leaving regulators to expect the sports betting industry to police itself.
The more people bet, the more taxes the state can collect. While aiming to protect consumers, regulators have incentives to help gambling companies get up and running quickly. Some states allow them to begin operations before regulators complete a comprehensive licensing review. The sports betting industry has been creative in how it persuades people to continue betting even if they lose money, and some are operated by gambling companies, while others are operated by the state. In Indiana, for example, people who sought help from the government to stop gambling found that they could still bet. Dozens did so. More Info Exploring the European Online Gambling Market: Growth Trends and Projections Online Gambling Regulation: A Scandinavian and Baltic Perspective Like it? Share it! |
